Arizton Advisory and Intelligence, a firm providing comprehensive market research reports on a number of industries, has conducted an in-depth analysis on the impact of COVID-19 on the U.S. essential oils market. The report posits that the essential oils market will grow at a CAGR of approximately 7% during by 2026.
Interestingly, the food and beverage (F&B) industry made the highest contribution to the essential oils market in both revenue and demand, with revenues generated by essential oils in F&B estimated at more than $1 billion in 2020.
The spa and relaxation industry is expected to grow the most, however, due to the increased popularity and demand for aromatherapy in regards to health, wellness and self-care. Because aromatherapy helps reduce stress and encourage relaxation and sleep, essential oils are expected to witness high demand from the aromatherapy sector.
Frankincense essential oil generated the highest revenue in the U.S., while orange essential oil experienced the highest demand by volume, followed by peppermint, eucalyptus, lemon, clove and frankincense. The demand for orange essential oil is expected to grow at a CAGR of more than 9% by 2026.
Due to the increasing use of flavors and fragrances, peppermint, tea tree, eucalyptus, rosemary and sandalwood oils are considered the leading revenue generators in the U.S. market and are expected to continue growing as well.
The full report is available here.